Globe Telecom Inc. yesterday said proceeds from its tower sale has reached close to P100 billion following its recent deal with Unity Digital Infrastructure, a partnership between Aboitiz InfraCapital and Partners.
Globe said it has signed a sale and leaseback agreement with Unity for the sale of 447 towers for total proceeds of P5.4 billion.
The sale to Unity brings Globe’s total towers sold from 7,059 to 7,506 towers, with the expected proceeds to be used to finance capital expenditures and maturing debts. Globe said this tower deal will strengthen its balance sheet, thus providing sufficient flexibility to compete in this dynamic market as well as propel its shift into becoming the Philippines’ leading digital solutions platform.
“The gross proceeds will be close to a P100-billion of which we turned over already 44 percent and has received P40.5 billion,” Rizza Maniego-Eala, Globe chief financial officer, told reporters during the virtual financial briefing yesterday.
Under the deal with Unity, the towers which consist of 84 percent ground-based and 16 percent rooftop towers, all located in Luzon, will be leased back to Globe for an initial period of 15 years.
The sale comes with a commitment to build over 200 towers across Visayas and/or Mindanao.
Globe said the first close for this portfolio is targeted to occur in the third quarter, with subsequent closings happening as and when closing conditions are met.
Globe estimates the pre-tax net transaction gain from this transaction to be P1.8 billion, reporting and recognition of which will be according to the timing of the transaction closings.
